- 4 -
equated to $2,040 in income and made an income adjustment for
$2,040, which is characterized in the notice of deficiency as a
"Frivolous Deduction".3
In November 1994, petitioner prepared and sent to respondent
another Form 1040X for 1992, in which petitioner listed the same
amount of gross income reported on the 1992 amended return,
$24,304; however, on this second amended return, petitioner
listed $12,087.49 as "nontaxable compensation, compensation
exclusion". This second amended return listed a tax of $416 and
claimed a refund of $1,256. Petitioner also signed the second
1992 amended return and stamped above his signature "Without
Prejudice UCC 1-207". In the explanation portion of the Form
1040X, petitioner included a compilation of tax protester
gibberish. This second 1992 amended return was not accepted for
filing by respondent.
3
The notice of deficiency states, in pertinent part:
The * * * [1992 amended return] was based on various
tax protestor arguments, including the taxpayer's
contention that income taxes are voluntary, wages are
not includable in taxable income, and that the
Sixteenth Amendment is limited to excise taxes. The
Service Center erroneously processed the taxpayer's
claim and abated $574 of his tax liability. The
taxpayer received a refund for this abatement.
The assessment of petitioner's 1992 taxes, based on the filed
1992 return, remained except for the $574 abatement resulting
from the 1992 amended return. Thus, the deficiency for 1992 is
limited to the $574 abatement.
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Last modified: May 25, 2011